SYDNEY: The new owners of womenswear chain Queenspark plan to more than double its current retail network and build its online business to the value of 10 bricks and mortar stores.
The brand was sold by Specialty Fashion Group (SFG) to a group of private investors for $5.5 million in October. It was reported that $4 million was paid upon completion of the sale, with a deferred consideration of $1.5 million to be paid over a period of three years.
SFG chief executive officer Gary Perlstein said the brand had not met all of the company's internal growth expectations.
"(W)e believe that the capital released from the sale will generate better returns invested elsewhere,” he said.
Queenspark's general manager Andrew Shub is remaining with the brand as one of the ownership team, along with Howard Herman, who comes from a retail and financial background. The other new owners declined to be named.
Shub said he originally introduced the South African brand to the Australian market nine years ago and was responsible for opening its first domestic store.
He built the brand to seven sites before selling it to SFG in 2007. It now has 26 locations nationally.
"The market size here is significantly bigger than South Africa and we do feel that 60 stores is a very possible target for the brand," he said.
"We think the online store might represent 10 of those [physical] stores eventually. We have certainly seen that potential more and more; it is a seri-
ous opportunity."
Shub said there was growth potential for the label in Victoria, Western Australia and Queensland and he is also looking to secure a department store partnership with Myer or David Jones to operate concessions.
Shub said the whole Queenspark team of around 10 core staff plus a network of retail staff that were employed by Specialty Fashion Group will remain with the brand. It will continue to be based in Sydney.
To grow brand recognition, online communication to its database members will be a focus, along with a boost in social networking.
Queenspark is pitched at women aged 35 plus, with a mix of classic and trend- based looks dropped into stores every 10 days. Shub said product will be enhanced to include more natural fabrics such as silk and wool. Prices range from $69 to $129 for the majority of items, with more detailed dresses and coats up to $299.
Melinda Oliver